CONVERSATION WITH NIPUL PATEL Pete Cardon: How important is it for business lead

Question

CONVERSATION WITH NIPUL PATEL Pete Cardon: How important is it for business leaders to understand other cultures? Nipul Patel: It is extremely important. We live in a connected society. Social media (Face- book, Twitter, LinkedIn, etc.) are increasingly connecting cultures across the globe. Successful business leaders must understand the needs, wants, and desires of people in the cultures they want to conduct business with. PC: What are a few of the major differences in how people communicate to conduct businesses in India and the United States? NP: Some differences have gotten smaller over time. However, there are still big differ- ences. The American business climate has a contract-based business approach. Even a simple rental contract requires many pages and goes through many revisions by many legal professionals. From the Indian perspective this contract-based approach shows distrust. In my opinion, it hinders the openness that must exist in conducting business transactions. In India, the majority of transactions are still conducted on a handshake basis. The value of one’s word is still a major aspect of doing business overseas. We are in the process of establishing a business venture in Thailand and Bangladesh. I see many similarities in conducting business in India and those countries. Although the formalities involved in doing business in the United States protect both buyer and seller, trust is an ingredient for a successful recipe. In India if you don’t get this trust, you have no chance of getting any deals with anyone. PC: What can business students do right now to increase their knowledge of other cultures? NP: Business students should learn as much about other cultures as possible. I would encour- age every aspiring business student to study in another country for at least a semester, if not more. Studying abroad allows you to experience the culture first hand. It is significantly different than just taking a course or two in foreign language. Although it is extremely important to learn the language, it is more important to learn the culture, traditions, and overall business climate of another country. Nipul Patel spends about nine months each year in the United States running the restaurants and convenience stores that he owns in Indiana. He lives in India for about three months per year to manage his real estate company and focus on various venture capital interes

What does Patel recommend for business students who whant to learn about other cultures?

If you had a chance to speak with Patel before a trip to India for business, what five questions would you ask him?

Explanation / Answer

I completely agree with the trust factor in business dealings and it becomes more important in an Indian scenario because it is the culture and belief system in India that gives paramount importance to trust. For example, trust of delivering results, trust in taking care of interest and trust of working for each other makes a business to expand in India. Further, trust can be drawn from any sources. That’s why, reference or referrals are also in good use to close a business deal in the Indian business environment.

Yes, I will definitely identify the factors that can build trust with my Indian clients. It can be the similar project delivered to other renowned businesses or known faces on board to meet the requirements. I will also not hesitate to build trust on the basis of natural, cultural factors such as similar religious values, cast and regional factors and language. I can rope in suitable person with Indian background who can capitalize on this trust and maximize its benefits.

Business students should learn the values & traditions of other cultures and factors that are given prime importance in those cultures. It will help in customizing the strategic approach while expanding business in those geographical areas. It increases the degree of success and firms will get business opportunities.

Five questions that I will ask, are as follows:
1.   What are the factors that build trust in India?
2.   Does cultural diversity play a role in business development in India?
3.   Do we need managers of Indian background to become successful in India?
4.   Which language should I prefer in India for communication?
5.   How much time do I need to build trust in India?

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.